Deal activity in India slowed in May compared to a strong April, with a total of 196 transactions valuing $11 billion, according to a recent report. The decline reflected a 10 percent drop in deal volumes and a 53 percent decrease in total value when excluding public market activity.
Private equity (PE) and mergers and acquisitions (M&A) remained the primary drivers of this activity, with 190 deals combined worth $10.2 billion. Large-scale transactions continued to dominate the landscape, led by two billion-dollar deals—one each in M&A and PE—that together accounted for nearly 42 percent of the total deal value at $4.6 billion.
Market participants noted that despite these fluctuations, deal momentum remained robust amid ongoing global uncertainties. There was a noticeable increase in average deal sizes, signaling heightened strategic interest among major domestic corporations. The report highlighted 14 deals exceeding $50 million in both M&A and private equity sectors, underscoring a growing focus on high-value opportunities.
M&A activity held steady with 76 deals totaling $6.3 billion. Domestic transactions formed the bulk of deal volume at 61 percent, supporting strategic consolidation across diverse sectors. Meanwhile, cross-border deals contributed significantly to deal values, emphasizing the international dimension of India’s corporate transactions.
Private equity was particularly active, recording 114 deals valued at $3.9 billion, marking the highest monthly aggregate deal value for the year so far. Investor appetite remained strong in sectors like Retail & Consumer, which led PE volumes with 30 deals worth $444 million, reflecting continued confidence in consumer and growth-stage brands.
Banking & Financial Services also stood out, attracting substantial investor interest and ranking among the top sectors by deal count and value. Manufacturing and pharmaceuticals emerged as joint leaders in M&A volumes, each with 14 transactions, maintaining their strategic significance in the market.
Public market activity stayed subdued, with only two IPOs raising $214 million, indicative of a cautious environment for primary equity issuance. However, qualified institutional placements (QIPs) maintained steady momentum, with four issuances raising a combined $568 million. Together, IPOs and QIPs contributed $782 million to the overall transaction value in May, as companies continued relying on institutional fundraising amid changing market conditions.